TKO Group Holdings, Inc.

Good afternoon, and thank you for joining the TKO fourth quarter and full year 2024 earnings call. My name is Kate, and I will be the moderator for today's call. At this time, all lines are in a listen-only mode and will be until the question and answer portion. If you would like to queue up for a question at any time, you may do so by pressing star followed by a one on your telephone keypad. I would now like to turn the call over to Seth Zasla, head of investor relations at TKO. Please proceed.

Good afternoon. and welcome to TKO's fourth quarter and full year 2024 earnings call. A short while ago, we issued a press release, which you can view on our investor relations website. A recording of this call will also be available via our website for at least 30 days. After prepared remarks from Ari Emanuel, TKO's executive chair and chief executive officer, and Andrew Schleimer, TKO's chief financial officer, we'll open the call for questions. Mark Shapiro, our President and Chief Operating Officer, and Andrew will be handling the Q&A. The purpose of this call is to provide you with information regarding our fourth quarter and full year 2024 performance. I want to remind everyone that the information discussed will include forward-looking statements and or projections that involve risks, uncertainties, and assumptions. Please see our filings with the Securities and Exchange Commission for further detail. If these risks or uncertainties were to materialize or any assumptions prove incorrect, our results may differ materially from those expressed or implied on this call. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events, except as legally required. Our commentary today will also include non-GAAP financial measures. which we believe provide an additional tool for investors to use in evaluating ongoing operating results and trends. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics can be found in our press release issued today, as well as the information posted on our IR website. With that, I'll now turn the call over to Ari.

Thanks, Seth. The fourth quarter capped off a milestone year for TKO, one that showcased the strength, unique value and demand of our premium IP. In our first full year as a public company, we delivered record financial performance. In 2024, the integration of UFC and WWE proved out, driving greater efficiency across the top line, as well as exceeding our guided net savings of $100 million. We strengthened our media rights portfolio by securing partnerships that will undoubtedly expand our universal reach and engagement. For starters, Moving Raw, our premier WWE franchise to Netflix, will put us in front of the streamer's 300 million subscribers week in and week out and serve to be transformative to our business. Our January launch at the Intuit Dome in Los Angeles was a spectacle, and our Monday night episodes since have consistently landed in Netflix's weekly top 10 across the U.S. and the globe. We have also successfully transitioned WWE SmackDown to USA Network and NXT to the CW, driving significant audience growth as a result. In particular, the CW's Tuesday night time slot saw a nearly 100% increase in fourth quarter total viewership over the prior year period, with even stronger gains in the key 18 to 34 demographic. Premier to date, NXT is up 12% compared to USA's 2024 average. Turning to our live events, UFC and WWE both had record-breaking years and set multiple all-time highs for ticket sales, attendance, and gate revenues worldwide. UFC delivered 10 all-time highest grossing event records in 2024, with five of those now ranking among the biggest in UFC history. Similarly, WWE had its most successful year for live events and set revenue records at 10 premium live events. Within the fourth quarter specifically, UFC closed out the year with back-to-back record-setting live events. We hosted our highest-grossing North American fight night ever in Tampa, and UFC 309 at Madison Square Garden cemented UFC's place as a cornerstone franchise for the world's most famous arena. UFC now holds seven of the top 10 highest-grossing event records in MSG history. At WWE, we set more than 40 individual market records for ticket sales and paid attendance in the quarter. Bad Blood in Atlanta delivered the largest gross ticket sales for a U.S. arena event in WWE history. Additionally, Survivor Series in Vancouver set the largest North American arena gate in WWE history, since topped by Raw's blockbuster debut with Netflix at the Intuit Dome. And Saturday night's main event returned with a sold-out crowd that set a WWE gate record for New York's Nassau Coliseum and reached more than 3 million U.S. households across NBC and Peacock. Throughout the year, we continued to convert demand into high-margin revenue, particularly through site fees, with approximately a third of UFC and WWE's marquee live events attracting incentive packages. Across our global brand partnerships, UFC's sponsorship revenue grew 28% for the full year, marking our seventh consecutive record-breaking year. We announced IBM as another blue-chip partner following major UFC agreements with Anheuser-Busch and Riyadh Season. And that momentum has continued into 2025 with the recent announcement of our Monster Energy Renewal, UFC's largest ever partnership. WWE also set an all-time high in sponsorship revenue, growing 20% year over year when looking at WWE's full year 2023, driven primarily by growth across our premium live events portfolio, as well as by new long-term brand partnerships and innovative in-ring placements. All told, these results highlight the power of our integrated model, the global popularity of UFC and WWE, and the increasing demand for premium live sports and entertainment. As we move into 2025, we remain focused on sustaining our progress and delivering on our KPIs, with our domestic rights renewals for UFC and WWE's premium live events our highest priority. We're also taking important steps to return capital to shareholders under the dividend and share repurchase program we announced in October. Finally, we expect to close our acquisitions of IMG, On Location, and PBR in the first quarter, expanding our global sports portfolio. Make no mistake about it, these industry-leading businesses will also help power WWE and UFC, benefiting both our loyal fan bases and our shareholders. Our immediate focus after the close will be on a quick and seamless integration. I would add that this work is actually already underway. Earlier today, we announced an agreement with the Kansas City Sports Commission for UFC, WWE, and PBR to hold three consecutive live events in April at the city's T-Mobile Center. This TKO takeover showcases the collective power of our properties in the marketplace. Looking ahead, we are laser focused on expanding our audience, deepening our partnership bench, and maximizing shareholder value. We have the right strategy, the right leadership, and a proven ability to execute. With our eyes squarely focused on driving revenue across multiple business lines, expanding our margins, and strong free cash flow conversion, we've never been more excited about what lies ahead for TKO. With that, I'll turn the call over to Andrew, and then Mark will join us.